The German economy continued to grow

Good Morning,

- Euro trade stable, on slightly recover mode as no fresh news from a Greek case…

- Asian shares rose as the S&P 500 Index rose to a fresh record last night.

- Greek Spokesman: Deal with Creditors can be made within 10 days.

- Negotiations between the Greek, French and German government leaders ended without any sign of a breakthrough that will unlock bailout funds and ensure Greece’s future in the euro region. With time running out for a deal to free up the remaining 7.2 billion-euro tranche of aid, talks between Prime Minister Alexis Tsipras, President Francois Hollande and Chancellor Angela Merkel broke up shortly in the Latvian capital Riga with the three agreeing only to stay in close contact. The negotiations took place in a “friendly and constructive atmosphere” and focused on “the successful fulfillment of the current program,” according to a common statement issued by the French and German governments separately. “It was agreed that the talks between the Greek government and the institutions will be continued,” they said.

- The German economy continued to grow at a slightly slower pace. As the Federal Statistical Office already reported in its first release of 13 May 2015, the gross domestic product (GDP) increased 0.3% - upon price, seasonal and calendar adjustment - in the first quarter of 2015 compared with the fourth quarter of 2014. A marked increase of +0.7% was recorded in the last quarter of 2014, as reported earlier. For the entire year of 2014, GDP values did not change as compared with the figures published so far (+1.6%).

- Morgan Stanley on EUR/USD: In its weekly FX note to clients today, Morgan Stanley argues that the EUR/USD has already a top in place as the USD has turned around, completing its downward correction within a secular bull trend. "Risk appetite remains the key variable for judging the EUR. The EUR’s funding status suggests repatriation related inflows will occur when investors reduce risk exposure, while rallying equity markets would push the EUR lower. It will be potential US data strength that steers the outlook for the USD...Our analysis indicates both the USD and GBP are in a strong position. EUR weakness should be steered by the ECB and its attempt to keep monetary transmission intact," MS projects. EUR/USD forecasts: MS maintains its EUR/USD forecasts at 1.04 by Q2-end, 1.03 by Q3-end, and 0.98 by year-end.

- Retail Sales in Canada to Climb at Slower Pace. Slightly higher gasoline prices likely helped retail trade in March, as Canadians freed up spending habits amid more mild weather conditions. Retail sales are estimated to have advanced 0.3% during the third month of the year, after jumping 1.7% in February.

- The Bank of Japan maintained its massive monetary stimulus on Friday and offered a slightly more upbeat view of the economy, unfazed by first-quarter GDP data that offered mixed signs on the strength of the recovery. The central bank also revised up its assessment on private consumption and housing investment, underscoring its confidence that the world's third-largest economy has emerged from the hit from last year's sales tax hike. At his post-meeting news conference, Governor Haruhiko Kuroda is likely to stress that Japan is on track to hit the bank's ambitious inflation target.

- New Zealand FM English: NZ on track for sustainable growth.

- BOJ's Kuroda says Japanese economy continues to recover moderately.

Have a nice Day!